US President threatens 20% tariff on EU vehicles - leatherbiz: Leading Leatherbiz

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US President threatens 20% tariff on EU vehicles

25/06/2018
US President Donald Trump has issued a warning to the European Union (EU) that he will impose a 20% tariff on European cars entering the US should the EU not lift tariffs it has imposed on US consumer goods.

It is the latest stage in an escalating dispute between the two world powers. The EU imposed tariffs on a wide range of consumer goods earlier this month in response to steel and aluminium tariffs imposed by the Trump administration. 

On June 21, President Trump said: “If these tariffs and barriers are not broken down soon and removed, we will be placing a 20% tariff on all their [the EU’s] cars coming into the US.”

According to data from Eurostat, the official statistics body of the European Union, the US is the biggest market for EU car exports. In 2016, it accounted for €48bn (£42bn), 25% of the total €192 billion of EU car exports. 

Following President Trump’s comments, shares in many US and European carmakers fell. This included Ford, General Motors, BMW, Daimler, Porsche and Volkswagen. 

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